What are other ways to use substantial equity?
I've built enough equity on my current home and I am looking for ways to use it wisely. Do I get a cash out refinance or pull a HELOC? Can equity be used as collateral instead of having a second lien on a new loan? Can it be used instead of paying a downpayment? I'm hearing different advice from people around me and I don't want to make the wrong decision. TIA! by narmada710 from Detroit, Michigan. Jan 23rd 2023
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
In the traditional mortgage world, I've never heard of the equity being allowed as down payment / collateral. A cash out refinance on the existing loan is typically better if you want more time to pay back the loan, and like stability, like a 30-yr fixed. Most HELOC's are variable, with interest only options in the first few years, but typically shorter amortization periods, like 15 or 20-years. Good luck. I lend in WI, MN, IA, ND, SD, Find me at FirstTimeHomeBuyer-MN.com | Cambria Mortgage | NMLS 274132
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